Retirement planning is one of the most important part of total financial planning of an individual. Retirement years are the beautiful years of life. After taking his education when an individual starts his working life, he is burdened with lots of different responsibilities in his life. But retirement years are the years when one can …
One of my friends is working in an engineering company at senior management level. 60% of his personal investment portfolio consists of his employer company shares. When, I ask him why he is buying so many shares of his employer’s company. He always gives me details of performance and future plans of his company. When …
Continue reading ‘Availability Bias in Investing : How it affects your Financial Decisions?’ »
If I ask you to recall name of 10 people you met this month, whom do you recall? Just observe, mostly you will recall name of 10 people whom you mate recently. This is recency effect. Similarly, if I ask you for opinion on behaviour or performance of any of your colleagues or employees kindly …
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Recently me & my wife were sitting idle at home so we planned to watch a movie. Bought the tickets online and went to watch the movie. In first 20 minutes we realized that the movie was boring and it was waste of time. I told my wife, let us move out and go for …
Continue reading ‘How Sunk Cost Fallacy affects your financial Life?’ »
In my last article I wrote about what is Anchoring Bias and we also saw few examples of anchoring Bias. Now this month I would like to throw some light on how it affects our investment decisions and How to get out of Anchoring Bias? How Anchoring Bias affects our investment decisions? Anchoring is basically …
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Anchoring Bias in Decision Making: In my last article we saw that while taking our financial decisions mostly we react emotionally. We also discussed left brain: right brain theory as well as System 1 and system 2 theory given by Danial Kahneman. In this article I want to discuss Anchoring Bias which affects our decision …
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Currency demonetization, suddenly this word hits us on the evening of 8th of November, 2016 and we all were shocked with the demonetization measure of Prime Minister Shri Narendra Modi. This article is an effort to understand What Currency demonetization is actually and what will be its Short term & long term Economic implications. To …
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Most of the times people think that savings and investment are same and use these two words as synonyms of each other. But actually savings and investment are two different concepts and we need to realize this. Even many of the financé websites also confuse savings with investments. Many times we also give messages to …
Continue reading ‘Saving Money vs. Investing Money : What is the difference?’ »
As discussed in my earlier post “Inflation: Biggest Enemy in your Financial Life.” Inflation is one of the most signifacant risk to once fiancial life, now the question is how to fight with it? First of all investors need to recognize the impact of inflation on their long term goals. Most of the times while planning …
Inflation is one of the biggest enemies in our financial life but most of the times I find that investors forget to consider impact of inflation on their financial lives. In this article I will try to explain “what is inflation?” from micro economic perspective and then we will see what is impact of inflation …
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